Personal Bankruptcy Forum


Author:   Trevor
Date:   January 18 , 2002
Question:  

What about filing income tax returns? I am self-employed and have been advised that the Trustee will file for that part of the year before I declare bankruptcy, but as I am self-employed I will be responsible for filing for that part of the year after the bankruptcy is declared. I have also been told that some deductions are pro-rated and some are not, and some carryforwards not used on the pre-bankruptcy return are lost. I am specifically interested in how charitable donation carryforwards and self-employed CPP calculations are treated but am looking for advise as to this whole matter of filing income tax returns - who files what, etc. Thank you.

 


From:		  

Ann Clarke, Collins Barrow Limited
Date:   January 19, 2002
Answer:   In a bankruptcy the Trustee is required to ensure the previous year and the pre-bankruptcy (period leading up to the date of filing) and usually the post-bankruptcy (period from date of bankruptcy to Dec 31) tax returns are filed. It is customary for a self-employed person to file their own post return as they usually owe tax on that income. Statutory deductions are pro-rated for the relevant days of the pre- and post periods. The answer to your question on what can be carried forward, CPP etc. exceeds the scope of this Q&A forum - your Trustee's tax preparer will be able to answer your specific question or you can contact CCRA directly with your concerns.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca




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